Today, Tom Smuts over at United Hollywood posted an article on a new bill facing the California state senate, which forces studio production arms to sell film and TV content to their distribution umbrella organizations at fair market value.  For years, they've sold this content (to themselves, basically) for pennies on the dollar, to cut down on the money those production companies have to pay talent through residuals.  It's worked because it's the production company that owes the talent that percentage.  If the production company sells the film at a loss, even to another branch of it's parent company, then there's technically no profits to participate in.  The distribution company, which is part of the same conglomerate, doesn't owe the talent anything.  When they make profit, it's all theirs.

When the studios say most movies lose money, this is what they're talking about.  Most distribution companies make boatloads of it.  That's the part they leave out.  Hmm.

It's a great article, and worth checking out.  This bill, if passed, will mean good things for the entire creative community.  That said, we've got to stay sharp.

If they're smart, the studios will use this bill to cut down on the relative incentives behind independent filmmaking. 

If indie filmmakers don't take stock of ALL the benefits behind producing indie content, if they don't keep exploring alternative models for theatrical and ancillary distribution, the added financial incentive to make studio films could create a rennaisance for the studio system as a whole.  Quite a few people in this town are content with taking a larger slice of the pie.  Only a few, like myself, want the whole damned oven.

I will say that this bill couldn't be better timed.  Awareness of the problems in the residuals system is at an absolute peak in the wake of the writers' strike.  My hats off to those who drafted it.  If it's passed, it will be a big step in the right direction as far as enforcement of corporate responsibility in the State of California.

Besides, if Arnold is going back into movies after his term is up, this is absolutely an investment in his future.  He'll see the value in it, clear as day.

Seems like this one might be hard to vote down.